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Section 1: 8-K (8-K)

PAG 8-K Q3 2017 Earnings

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

Date of Report (Date of Earliest Event Reported):

October 25, 2017

 

Penske Automotive Group, Inc.

 


(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

Delaware

    

1-12297

    

22-3086739

(State or other jurisdiction

 

(Commission

 

(I.R.S. Employer

of incorporation)

 

File Number)

 

Identification No.)

 

 

 

 

 

2555 Telegraph Road, Bloomfield Hills,
Michigan

 

 

 

48302

(Address of principal executive offices)

 

 

 

(Zip Code)

 

 

 

 

 

Registrant’s telephone number, including area code:

 

248-648-2500

 

 

 

 

 

Not Applicable

 

 

Former name or former address, if changed since last report

 

 

 

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


 

 

Item 2.02 Results of Operations and Financial Condition.

 

On October 25, 2017, we issued a press release announcing our third quarter 2017 financial results and other information. A copy of the press release is furnished as Exhibit 99.1.

 

Item 7.01 Regulation FD Disclosure.

 

The following information is furnished pursuant to Item 7.01 “Regulation FD Disclosure.”

 

On October 25, 2017, we issued a press release announcing our third quarter 2017 financial results and other information. A copy of the press release is furnished as Exhibit 99.1.

 

Item 8.01 Other Events.

 

Investors and others should note that we announce material financial information using our company website (www.penskeautomotive.com), our investor relations website (investors.penskeautomotive.com), SEC filings, press releases, public conference calls and webcasts. Information about Penske Automotive, its business, and its results of operations may also be announced by posts on the following social media channels:

 

·

Penske Automotive’s Twitter feed (www.twitter.com/penskecarscorp)

·

Penske Automotive’s Facebook page (www.facebook.com/penskecars)

 

The information that we post on these social media channels could be deemed to be material information. As a result, we encourage investors, the media, and others interested in Penske Automotive to review the information that we post on these social media channels. These channels may be updated from time to time on Penske Automotive’s investor relations website.

 

Item 9.01 Financial Statements and Exhibits.

 

Exhibit 99.1     Press Release.

 


 

 

Exhibit Index

 

 

 

 

Exhibit No.

 

Description

99.1

 

Press Release.

 

 

 

 

 


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

    

Penske Automotive Group, Inc.

 

 

 

October 25, 2017

 

By: 

/s/ Shane M. Spradlin

 

 

 

Name: Shane M. Spradlin

 

 

 

Title: Executive Vice President

 

 


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

pag_Ex99_1

 

 

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Penske Automotive Group, Inc.
2555 Telegraph Road
Bloomfield Hills, MI 48302-0954

 

 

FOR IMMEDIATE RELEASE

Picture 4    Picture 8    Picture 1    Picture 3

 

PENSKE AUTOMOTIVE REPORTS RECORD THIRD QUARTER RESULTS

Highest Third Quarter Income From Continuing Operations

and Earnings Per Share in Company History

Earnings Per Share From Continuing Operations Increases 6.8% to $1.10 

Increases Securities Repurchase Authorization to $200 Million

 

 

 

 

Third Quarter 2017

  

  

Nine Months 2017

 

 

Revenue Increases 7.2% to $5.5 Billion; Excluding Foreign Exchange +6.9%

 

 

Revenue Increases 5.0% to $16.0 Billion; Excluding Foreign Exchange +8.0%

 

 

Income from Continuing Operations Attributable to Common Shareholders Increases 7.9% to $94.3 Million; Excluding Foreign Exchange +7.6% to $94.0 Million

 

 

 Income from Continuing Operations Attributable to Common Shareholders Increases 8.5% to $283.5 Million; Excluding Foreign Exchange +12.4% to $293.8 Million

 

 

Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 6.8% to $1.10;  No Earnings Per Share Impact from Foreign Exchange

 

 

 Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 8.9% to $3.30; Excluding Foreign Exchange +12.9% to $3.42

 

 

 

 

BLOOMFIELD HILLS, MI, October 25, 2017 –  Penske Automotive Group, Inc. (NYSE:PAG), an international transportation services company, today announced record third quarter results. For the three months ended September 30, 2017, income from continuing operations attributable to common shareholders increased 7.9% to $94.3 million, and related earnings per share increased 6.8% to $1.10 when compared to the same period last year. Total automotive retail unit volume increased 9.9% and total revenue increased 7.2% to $5.5 billion. Excluding foreign exchange, total revenue increased 6.9%. There was no impact to earnings per share from foreign exchange during the third quarter.    During the third quarter, operations in certain markets were disrupted by several hurricanes which impacted our ability to sell and service vehicles.  We estimate that storm-related losses, expenses and business interruption adversely impacted income from continuing operations and earnings per share by approximately $3.0 million and $0.04 per share, respectively. 

 

 

 

 

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Commenting on the company’s results, Penske Automotive Group Chairman Roger S. Penske said,  “I am pleased to report another quarter of record performance for our diversified transportation services business.  Third quarter results were driven by recently completed acquisitions, improving variable gross profit per unit retailed and a 200 basis-point increase in service/parts gross margin, coupled with strong performance from our North American retail commercial truck operations and our equity investment in Penske Truck Leasing.”    

 

Automotive Retail Highlights of the Third Quarter

 

·

Retail Unit Sales +9.9% to  130,257

 

Ø

New unit retail sales -2.5%

 

Ø

Used unit retail sales +25.4%

 

·

Same-Store Retail Unit Sales -2.9%  to  114,941

 

Ø

New unit retail sales -6.2%

 

Ø

Used unit retail sales +1.2%

 

·

Same-Store Retail Revenue -1.0%; Excluding F/X -1.2%

 

Ø

New -3.5%;  Used +1.7%;  Finance & Insurance +5.0%;  Service and Parts +1.5%

 

Ø

-2.4% in the United States; +1.1% Internationally

 

·

Average Transaction Price Per Unit

 

Ø

New $38,542;  +3.8%

 

Ø

Used $25,337;  -7.6%

 

·

Average Gross Profit Per Unit

 

Ø

New $2,877 (Excluding F/X $2,863),  +$186/unit; Gross Margin 7.5%,  +20 basis points

 

Ø

Used $1,434,  -$158/unit; Gross Margin 5.7%,  -10 basis points

 

Ø

Finance & Insurance $1,167,  +$79/unit

 

Note: F/X = foreign exchange

 

For the nine months ended September 30, 2017, total revenue increased 5.0% to $16.0 billion, with a 2.9% decrease in same-store retail revenue. Excluding foreign exchange, total revenue increased 8.0%, while same-store retail revenue increased 0.3%. Total automotive retail unit volume increased 10.6%, with a 2.6% decrease on a same-store basis. Income from continuing operations attributable to common shareholders increased  8.5% to $283.5 million and related earnings per share increased 8.9% to $3.30 

 

 

 

 

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when compared to the same period last year. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.12.

Retail Commercial Truck Operations

Penske Automotive Group operates twenty medium and heavy-duty truck dealership locations in the U.S. and Canada under the “Premier Truck Group” brand name, offering primarily the Freightliner and Western Star brands. For the three and nine months ended September 30, 2017, Premier Truck Group retailed  2,096 and 5,162 units, generated $299.6 million and $739.8 million of revenue, and $44.3 million and $120.7 million of gross profit, respectively, principally through the retail sale of new/used medium and heavy-duty trucks and service/parts sales. Same-store revenue increased 11.8% and declined 10.4% for the three and nine months ended September 30, 2017, respectively.  For the three months ended September 30, 2017, gross profit per used truck retailed improved to $5,500 from a loss of $1,431 per unit in the same period last year, as used truck prices stabilized. Service and parts gross profit represented approximately 71.6% and 75.2% of Premier Truck Group’s gross profit for the three and nine months ended September 30, 2017, respectively.

Penske Truck Leasing

Penske Truck Leasing Co., L.P. (“PTL”) is a leading provider of full-service truck leasing, truck rental, contract maintenance and logistics services. During the third quarter of 2016, the company increased its ownership interest in PTL from 9.0% to 23.4%, and in the third quarter of 2017, increased its ownership by another 5.5%, bringing the total ownership interest in PTL to 28.9%.  For the three and nine months ended September 30, 2017, the company recorded $30.1 million and $66.9 million as part of equity in earnings of affiliates compared to $23.8 million and $36.6 million for the same periods last year, respectively. The company accounts for its ownership interest in PTL using the equity method of accounting.

Dividend and Share Repurchases

On October 11, 2017, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.33 per share, the twenty-sixth consecutive increase in the quarterly dividend.    

During the three months ended September 30, 2017, the company repurchased 252,000 shares for $10.0 million, or an average of $39.75 per share.  For the nine months ended September 30, 2017, the company has repurchased 302,000 shares for $12.7 million, or an average $41.95 per share.  In October

 

 

 

 

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2017, the Board of Directors approved an increase in the company’s securities repurchase authorization to $200.0 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the third quarter of 2017 on Wednesday,  October 25, 2017, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230‑1766 – [International, please dial (612) 332‑0107]. The call will also be simultaneously broadcast over the Internet through the Investor Relations section of the Penske Automotive Group website. Additionally, an investor presentation relating to the third quarter 2017 financial results has been posted to the company’s website. To access the presentation or to listen to the company’s webcast, please refer to www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc.,  (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, Canada, and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG employs more than 26,000 people worldwide and is a member of the Fortune 500 and Russell 2000. For additional information, visit the company’s website at www.penskeautomotive.com.

Non-GAAP Financial Measures

This release contains certain non-GAAP financial measures as defined under SEC rules, such as earnings before interest, taxes, depreciation and amortization (“EBITDA”). The company has reconciled these measures to the most directly comparable GAAP measures in the release. The company believes that these widely accepted measures of operating profitability improve the transparency of the company’s disclosures and provide a meaningful presentation of the company’s results from its core business operations excluding the impact of items not related to the company’s ongoing core business operations, and improve the period-to-period comparability of the company’s results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results, and should only be considered in conjunction with the company’s financial information that is presented in accordance with GAAP.

 

 

 

 

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Caution Concerning Forward Looking Statements

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.’s future sales and earnings potential. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: economic conditions generally, conditions in the credit markets and changes in interest rates and foreign currency exchange rates, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to natural disasters such as the recent hurricanes, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group’s business, markets, conditions and other uncertainties, which could affect Penske Automotive Group’s future performance. These risks and uncertainties are addressed in Penske Automotive Group’s Form 10‑K for the year ended December 31, 2016, and its other filings with the Securities and Exchange Commission (“SEC”). This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.

Find a vehiclehttp://www.penskecars.com

Engage Penske Automotivehttp://www.penskesocial.com

Like Penske Automotive on Facebookhttps://facebook.com/penskecars

Follow Penske Automotive on Twitterhttps://twitter.com/penskecars

Visit Penske Automotive on YouTubehttp://www.youtube.com/penskecars

 

Inquiries should contact:

 

 

J.D. Carlson

Anthony R. Pordon

Executive Vice President and

Executive Vice President Investor Relations

Chief Financial Officer

and Corporate Development

Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

248-648-2810

248-648-2540

jcarlson@penskeautomotive.com

tpordon@penskeautomotive.com

 

# # #

 

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

(Amounts In Millions, Except Per Share Data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

   

 

 

   

 

 

   

Increase/

    

   

 

   

 

 

   

Increase/

 

 

2017

 

2016

 

(Decrease)

 

2017

 

2016

 

(Decrease)

Revenue

 

$

5,524.4

 

$

5,152.0

 

7.2

%  

 

$

15,988.9

 

$

15,230.7

 

5.0

%

Cost of Sales

 

 

4,701.8

 

 

4,407.8

 

6.7

%  

 

 

13,574.7

 

 

12,991.4

 

4.5

%

Gross Profit

 

$

822.6

 

$

744.2

 

10.5

%  

 

$

2,414.2

 

$

2,239.3

 

7.8

%

SG&A Expenses

 

 

646.1

 

 

581.2

 

11.2

%  

 

 

1,869.8

 

 

1,722.8

 

8.5

%

Depreciation

 

 

24.3

 

 

21.5

 

13.0

%  

 

 

70.0

 

 

66.8

 

4.8

%

Operating Income

 

$

152.2

 

$

141.5

 

7.6

%  

 

$

474.4

 

$

449.7

 

5.5

%

Floor Plan Interest Expense

 

 

(16.4)

 

 

(11.9)

 

37.8

%  

 

 

(45.6)

 

 

(37.8)

 

20.6

%

Other Interest Expense

 

 

(27.8)

 

 

(25.1)

 

10.8

%  

 

 

(79.2)

 

 

(61.8)

 

28.2

%

Equity in Earnings of Affiliates

 

 

30.9

 

 

25.6

 

20.7

%  

 

 

70.9

 

 

43.1

 

64.5

%

Income from Continuing Operations Before Income Taxes

 

$

138.9

 

$

130.1

 

6.8

%  

 

$

420.5

 

$

393.2

 

6.9

%

Income Taxes

 

 

(44.7)

 

 

(41.7)

 

7.2

%  

 

 

(136.0)

 

 

(128.4)

 

5.9

%

Income from Continuing Operations

 

$

94.2

 

$

88.4

 

6.6

%  

 

$

284.5

 

$

264.8

 

7.4

%

Income (Loss) from Discontinued Operations, net of tax

 

 

0.1

 

 

0.1

 

 —

%  

 

 

(0.3)

 

 

(1.1)

 

(72.7)

%  

Net Income

 

$

94.3

 

$

88.5

 

6.6

%  

 

$

284.2

 

$

263.7

 

7.8

%

Less: (Loss) Income Attributable to Non-Controlling Interests

 

 

(0.1)

 

 

1.0

 

(110.0)

%  

 

 

1.0

 

 

3.4

 

(70.6)

%

Net Income Attributable to Common Shareholders

 

$

94.4

 

$

87.5

 

7.9

%  

 

$

283.2

 

$

260.3

 

8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts Attributable to Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Income from Continuing Operations

 

$

94.2

 

$

88.4

 

6.6

%  

 

$

284.5

 

$

264.8

 

7.4

%

Less: (Loss) Income Attributable to Non-Controlling Interests

 

 

(0.1)

 

 

1.0

 

(110.0)

%  

 

 

1.0

 

 

3.4

 

(70.6)

%

Income from Continuing Operations, net of tax

 

$

94.3

 

$

87.4

 

7.9

%  

 

$

283.5

 

$

261.4

 

8.5

%

Income (Loss) from Discontinued Operations, net of tax

 

 

0.1

 

 

0.1

 

 —

%  

 

 

(0.3)

 

 

(1.1)

 

(72.7)

%  

Net Income Attributable to Common Shareholders

 

$

94.4

 

$

87.5

 

7.9

%  

 

$

283.2

 

$

260.3

 

8.8

%

Income from Continuing Operations Per Share

 

$

1.10

 

$

1.03

 

6.8

%  

 

$

3.30

 

$

3.03

 

8.9

%

Income Per Share

 

$

1.10

 

$

1.03

 

6.8

%  

 

$

3.30

 

$

3.02

 

9.3

%

Weighted Average Shares Outstanding

 

 

86.0

 

 

85.2

 

0.9

%  

 

 

85.9

 

 

86.3

 

(0.5)

%

 

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

    

September 30,

    

December 31,

 

 

 

2017

 

2016

 

Assets:

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

37.2

 

$

24.0

 

Accounts Receivable, Net

 

 

938.8

 

 

879.0

 

Inventories

 

 

3,770.3

 

 

3,408.2

 

Other Current Assets

 

 

96.5

 

 

73.9

 

Assets Held for Sale

 

 

 —

 

 

8.4

 

Total Current Assets

 

 

4,842.8

 

 

4,393.5

 

Property and Equipment, Net

 

 

2,091.4

 

 

1,806.5

 

Intangibles

 

 

2,133.7

 

 

1,711.3

 

Other Long-Term Assets

 

 

1,214.4

 

 

921.7

 

Total Assets

 

$

10,282.3

 

$

8,833.0

 

 

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

 

 

Floor Plan Notes Payable

 

$

2,222.3

 

$

2,084.5

 

Floor Plan Notes Payable – Non-Trade

 

 

1,388.5

 

 

1,233.3

 

Accounts Payable

 

 

627.6

 

 

497.4

 

Accrued Expenses

 

 

369.9

 

 

360.0

 

Current Portion Long-Term Debt

 

 

67.6

 

 

48.3

 

Liabilities Held for Sale

 

 

0.7

 

 

6.1

 

Total Current Liabilities

 

 

4,676.6

 

 

4,229.6

 

Long-Term Debt

 

 

2,170.5

 

 

1,828.8

 

Other Long-Term Liabilities

 

 

1,323.2

 

 

995.1

 

Total Liabilities

 

 

8,170.3

 

 

7,053.5

 

Equity

 

 

2,112.0

 

 

1,779.5

 

Total Liabilities and Equity

 

$

10,282.3

 

$

8,833.0

 

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

    

2017

    

2016

    

2017

    

2016

 

Geographic Revenue Mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

58.9

%  

 

60.7

%  

 

58.6

%  

 

59.4

%

U.K.

 

 

33.8

%  

 

32.7

%  

 

33.9

%  

 

33.6

%

Other International

 

 

7.3

%  

 

6.6

%  

 

7.5

%  

 

7.0

%

Total

 

 

100.0

%  

 

100.0

%  

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

$

5,085.4

 

$

4,772.1

 

$

14,882.5

 

$

14,121.8

 

Retail Commercial Trucks

 

 

299.6

 

 

266.1

 

 

739.8

 

 

782.3

 

Commercial Vehicles Australia/Power Systems and Other

 

 

139.4

 

 

113.8

 

 

366.6

 

 

326.6

 

Total

 

$

5,524.4

 

$

5,152.0

 

$

15,988.9

 

$

15,230.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

$

744.2

 

$

674.7

 

$

2,198.5

 

$

2,041.7

 

Retail Commercial Trucks

 

 

44.3

 

 

38.2

 

 

120.7

 

 

109.7

 

Commercial Vehicles Australia/Power Systems and Other

 

 

34.1

 

 

31.3

 

 

95.0

 

 

87.9

 

Total

 

$

822.6

 

$

744.2

 

$

2,414.2

 

$

2,239.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

 

14.6

%  

 

14.1

%  

 

14.8

%  

 

14.5

%

Retail Commercial Trucks

 

 

14.8

%  

 

14.4

%

 

16.3

%  

 

14.0

%

Commercial Vehicles Australia/Power Systems and Other

 

 

24.5

%  

 

27.5

%  

 

25.9

%  

 

26.9

%

Total

 

 

14.9

%  

 

14.4

%  

 

15.1

%  

 

14.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

    

 

    

 

    

Increase/

    

 

    

 

    

Increase/

 

 

 

2017

 

2016

 

(Decrease)

 

2017

 

2016

 

(Decrease)

 

Operating Items as a Percentage of Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

14.9

%  

14.4

%  

50

bps  

15.1

%  

14.7

%  

40

bps  

Selling, General and Administrative Expenses

 

11.7

%  

11.3

%  

40

bps  

11.7

%  

11.3

%  

40

bps  

Operating Income

 

2.8

%  

2.7

%  

10

bps  

3.0

%  

3.0

%  

 —

bps  

Inc. From Cont. Ops. Before Inc. Taxes

 

2.5

%  

2.5

%  

 —

bps  

2.6

%  

2.6

%  

 —

bps  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Items as a Percentage of Total Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

78.5

%  

78.1

%  

40

bps  

77.5

%  

76.9

%  

60

bps  

Operating Income

 

18.5

%  

19.0

%  

(50)

bps  

19.7

%  

20.1

%  

(40)

bps  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

    

 

 

    

 

 

    

Increase/

    

 

 

    

 

 

    

Increase/

 

(Amounts in Millions)

 

2017

 

2016

 

(Decrease)

 

2017

 

2016

 

(Decrease)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA*

 

$

191.0

 

$

176.7

 

8.1

%  

$

569.7

 

$

521.8

 

9.2

%

Floorplan Credits

 

$

10.9

 

$

10.2

 

6.9

%  

$

29.3

 

$

29.3

 

 —

%

Rent Expense

 

$

59.3

 

$

50.9

 

16.5

%  

$

168.1

 

$

154.3

 

8.9

%


* See the following Non-GAAP reconciliation table.

 

 

 

 

 

8

C:\Users\109186\Desktop\Capture1.PNG

 


 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

    

2017

    

2016

    

2017

    

2016

 

Retail Automotive Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

New Retail

 

 

64,365

 

 

65,986

 

 

187,377

 

 

186,909

 

Used Retail

 

 

65,892

 

 

52,536

 

 

194,384

 

 

158,213

 

Total

 

 

130,257

 

 

118,522

 

 

381,761

 

 

345,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

2,480.8

 

$

2,449.2

 

$

7,189.9

 

$

7,178.4

 

Used Vehicles

 

 

1,669.5

 

 

1,440.3

 

 

4,850.6

 

 

4,331.5

 

Finance and Insurance, Net

 

 

152.0

 

 

129.0

 

 

436.6

 

 

373.1

 

Service and Parts

 

 

520.9

 

 

492.2

 

 

1,540.1

 

 

1,466.5

 

Fleet and Wholesale

 

 

262.2

 

 

261.4

 

 

865.3

 

 

772.3

 

Total Revenue

 

$

5,085.4

 

$

4,772.1

 

$

14,882.5

 

$

14,121.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

185.2

 

$

177.6

 

$

552.6

 

$

546.2

 

Used Vehicles

 

 

94.5

 

 

83.7

 

 

282.4

 

 

257.8

 

Finance and Insurance, Net

 

 

152.0

 

 

129.0

 

 

436.6

 

 

373.1

 

Service and Parts

 

 

308.0

 

 

280.9

 

 

911.4

 

 

851.0

 

Fleet and Wholesale

 

 

4.5

 

 

3.5

 

 

15.5

 

 

13.6

 

Total Gross Profit

 

$

744.2

 

$

674.7

 

$

2,198.5

 

$

2,041.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

38,542

 

$

37,117

 

$

38,371

 

$

38,406

 

Used Vehicles

 

 

25,337

 

 

27,415

 

 

24,954

 

 

27,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

2,877

 

$

2,691

 

$

2,949

 

$

2,922

 

Used Vehicles

 

 

1,434

 

 

1,592

 

 

1,453

 

 

1,629

 

Finance & Insurance

 

 

1,167

 

 

1,088

 

 

1,144

 

 

1,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

7.5

%  

 

7.3

%  

 

7.7

%  

 

7.6

%  

Used Vehicles

 

 

5.7

%  

 

5.8

%  

 

5.8

%  

 

6.0

%  

Service and Parts

 

 

59.1

%  

 

57.1

%  

 

59.2

%  

 

58.0

%  

Fleet and Wholesale

 

 

1.7

%  

 

1.3

%  

 

1.8

%  

 

1.8

%  

Total Gross Margin

 

 

14.6

%  

 

14.1

%  

 

14.8

%  

 

14.5

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

48.8

%  

 

51.3

%  

 

48.3

%  

 

50.8

%

Used Vehicles

 

 

32.8

%  

 

30.2

%  

 

32.6

%  

 

30.7

%

Finance and Insurance, Net

 

 

3.0

%  

 

2.7

%  

 

2.9

%  

 

2.6

%

Service and Parts

 

 

10.2

%  

 

10.3

%  

 

10.3

%  

 

10.4

%

Fleet and Wholesale

 

 

5.2

%  

 

5.5

%  

 

5.9

%  

 

5.5

%

Total

 

 

100.0

%  

 

100.0

%  

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

24.9

%  

 

26.3

%  

 

25.1

%  

 

26.8

%

Used Vehicles

 

 

12.7

%  

 

12.4

%  

 

12.8

%  

 

12.6

%

Finance and Insurance, Net

 

 

20.4

%  

 

19.1

%  

 

19.9

%  

 

18.3

%

Service and Parts

 

 

41.4

%  

 

41.6

%  

 

41.5

%  

 

41.7

%

Fleet and Wholesale

 

 

0.6

%  

 

0.6

%  

 

0.7

%  

 

0.6

%

Total

 

 

100.0

%